Tag Archives: word of mouth

Return on Engagement

So, maybe I have been hiding under a rock, but today was the first time I’ve heard the expression that “ROE” or “Return on Engagement” has replaced “ROI” or “Return on Investment” (in the marketing universe).

Active vs. passive

So what is ROE?  It’s about focusing on engagement, and relationships, and attracting and rewarding the right kind of brand advocates to help spread your message.  It is getting people involved in what you do and how you do it.  Or at least that’s what I believe it means.  The term is so new, it doesn’t even have a place in Wikipedia yet.

With social media and the new social networks it has changed how we build a marketing plan.  Although social media does not have an upfront price tag like radio or TV, it is labor intensive and has a reputation (just for kids, not business worthy, etc)  it still needs to get past.  Using social networks for business practices is still new.  There are stumbling blocks.  But, for those that figure it out, the return can be big (as the early adopter that everyone else will try to mirror).

Should ROI ever have been used when it applied to marketing?  Probably not.  How do you really determine the ROI of a radio spot?  Isn’t it more about the response?  That’s why I think ROE is brilliant.  It allows us as marketers to clarify a business who our best customers are and what we can do to continue to excite and engage them.  No matter what the means or marketing channel.

Measurement

Here’s the start of my check list for ROE.  Should these be here?  What others should be added & why?

* Value for advocacy: what is the cost per action as applied to advocacy or outreach (branding, education, etc) campaigns. Including being able to access as many people as possible when your version of a Katrina hits or you have a window of opportunity where the issue you’re working on hits the headlines.

* Recruitment: how many friends per week have been acquired?  How many lost?

* Opportunity cost: how many hours per week have my staff or volunteers devoted to spending time in social networks?

* Viral benefit of social networks: if you have a network in place, you might increase your chances of reaching a lot of people to spread your news. Most social networks are set up to enable communications with a lot of people quickly.

* Demographics: is the audience you’re recruiting from the social network appropriate for your organization?

* Message control: your message is likely to get picked up by others, and to be successful, some amount of message control will likely need to be sacrificed.

* Investing in the future: Maybe the younger demographic of the social networks will be interested in your organization in the future, so start building awareness now.